A Similar Point Of View

Peter Stilphen has just released his latest blog entry and I thought that his perspective, while not unique, was worth sharing. Despite his misspelling of Bob Dickinson's name, I think his classification of the 4 types of MLM participants is right on!

It is not posted just yet, so I am pasting it here.

YTB International, the most dispicable, in my opinion, and largest multi-level-marketing travel company and card mill thought they had one more in the bag on its quest to be more credible. YTB had elected Bob Dickerson, retired CEO for Carnival Cruise Lines to its Board of Directors along with a local, non-descript politician from Florida. There was a good compensation package in place for the new Board Members. However, Mr. Dickerson, remaining loyal to the many travel agents who have supported him over the years, declined the Board seat.

YTB International, in recent months, has been trying to gain more acceptance and credibility with the mainstream travel industry. They have hired well known and respected Marc Mancini to write training programs, purchased a retail travel agency in Canada and most recently attempted to recruit one of the best known cruise executives.

The problem with YTB and the other MLMs of this world is that their focus and revenues are not based upon earning travel commissions. About 20% of their revenue is from earned commissions while the rest is about signing up referral agents and selling websites that don't draw flies.

The MLM world is very different in that management is generally made up of smooth talking "con artists", used car salesmen (YTB also sells cars) and former snake oil salespeople. You just need to do a little research on these people to see how they talk about the MLM industry and each other. The serious travel agents who started with YTB are moving to the legitimate Host Agencies because the commissions are higher, the costs are lower, the training is consistent and there is support.

It is unfortunate CLIA is a major supporter of these MLMs just because it brings in revenue and damn the real travel agents and their dedicated work.

My research of the MLM plague has resulted in dividing MLM players into the following categories.

1) Those smooth talking "con artists" etc, as mentioned above, who have no conscience when making statements as to the wealth building promises using their plan. These are generally the MLM's management who make most of the money.

2) The next tier are those who came into the game afterward, but see much wealth ahead of them in creating a team with their own identity and often their own website. They also have no conscience and prey upon their family, friends and anybody who will listen. Some of them do make money from selling business opportunities but it is generally short lived.

3) This group are the real suckers and are sold a dream based on hype, deceit and lies. Their predator, from 2 above, relies on the individual's own greed to sell them. These people last a very short time after running out of families and friends to sell. Tthey also have no conception of operating a business.

4) From group 3 above you have a small group who are really only interested in becoming a travel agent. These are the ones who eventually see past the BS and seek out more legitimate sources or a Host Agency in which to pursue their ambitions of being a successful travel agent. This is the group the legitimate travel industry desires.